In the Short Run, the Marginal-Revenue Product Curve Is ________

question 226

Multiple Choice

In the short run, the marginal-revenue product curve is ________ because of ________.

• A) downward sloping; diminishing returns
• B) upward sloping; increasing returns
• C) downward sloping; increasing returns
• D) upward sloping; diminishing returns

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Definitions:

Tax

Compulsory financial charges or other types of levies imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Producer Surplus

The difference between what producers are willing to accept for a good or service and the higher price they actually receive, representing the benefit to producers.

Tax

A tax represents an obligatory monetary fee or different kind of charge applied to a taxpayer by a government entity, intended to finance government operations and a range of public spending.

Sellers Receive

Refers to the revenue or payment that sellers get in exchange for providing goods or services in a market.